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United States v. Southland Management Corp., 326 F.3d 669 (2002)

Citation
United States v. Southland Management Corp., 326 F.3d 669 (2002)
Parent Document
United States v. Southland Management Corp., 326 F.3d 669 (2002)
Effective Date
2002-05-22
Original Source
https://www.courtlistener.com/opinion/27565/united-states-v-southland-managem... ↗

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The National Housing Act of 19345 was enacted to encourage private industry to provide housing for low-income families.6 It authorizes the U.S. Department of Housing and Urban Development (“HUD”) to guarantee private mortgage loans to construct new housing and rehabilitate old structures for “families with incomes so low that they could not otherwise decently house themselves.”7 Private property owners receiving the nonrecourse mortgages must enter into a “regulatory agreement” with HUD which specifies “rents, charges, and other methods of operation, in such form and in such manner as in the opinion of the Secretary [of HUD] will effectuate the purposes of this section.... ”8 In 1937, the United States Housing Act9 was enacted to provide housing by making payments directly to local housing authorities. Section 8 was added to this Act in 1974 to authorize the making of “assistance payments” to encourage private property owners to provide housing.10 *672The amount of these assistance payments (made directly to the private property owners in the form of a subsidy) is determined by what the tenants can afford to pay, and what the private property owner could otherwise expect to charge under the prevailing market rates.11 To receive assistance payments the property owner must enter into a housing assistance payment contract (“HAP Contract”).12